Germany’s automotive industry is becoming increasingly mired in labor-management conflict. As domestic automakers grapple with deteriorating earnings amid mounting pressure from Chinese electric vehicle manufacturers, sweeping restructuring efforts have become unavoidable. However, fierce union resistance is delaying the industry’s structural transformation. Against this backdrop, market observers argue that Europe’s automakers should move beyond company-specific restructuring and instead establish an industry-wide collaborative framework similar to Japan’s to overcome the crisis.
